Renewable Heat Incentive - Local Authority Funding

Details of the new Renewable Heat Incentive Scheme have been published.

The incentive, which is the first of its kind in the world, will encourage the installation of renewable heat equipment such as solar thermal technologies, biomass boilers and heat pumps. It will be funded from general Government funding, not through the previously proposed RHI levy.

Phase 1

From July 2011, the Renewable Heat Incentive (RHI) tariffs for non-domestic installations in the industrial, business and public sector were introduced. There will also be support of around £15 million for households through the RHI Premium Payment from July 2011. In return for the payments, participants will have to provide feedback on how the equipment performs in practice.

Phase 2

From October 2012, RHI tariffs for domestic properties will become available at the same time as the introduction of the Green Deal. Anyone in receipt of Renewable Heat Premium Payments will be eligible for the RHI, as will anybody who has installed an eligible technology since 15 July 2009.

The RHI Premium Payment

Up to 25,000 installations from July will be supported by a 'RHI Premium Payment' to help cover the purchase price. Eligibility criteria for the payments will include:

• A fair spread of technologies across all regions of Great Britain.
• A well insulated home based on its Energy Performance Certificate.
• A focus on properties off the gas grid, where heating fuels such as heating oil are more expensive and have a higher carbon content.
• Agreement from the householder to monitor the performance of installations.

A DECC press release on 10 March 2011 indicated likely levels of support for RHI premium payments:
 

Technology	Likely level of support (per unit)
Solar thermal	£300
Air source heat pumps	£850
Biomass boilers	£950
Ground source heat pumps	£1250

Full details of the RHI Premium Payment were published in May 2011. Due to State Aid rules there may be limits to how the Premium Payment is applied to social landlords.

RHI tariffs - domestic

RHI payments will start for homes alongside the Green Deal in 2012 to allow for a more whole-house approach to heat production and energy saving. The Department for Energy and Climate Change will consult on the RHI tariffs later in the year.
Those who have taken up the RHI Premium Payment will be eligible for RHI tariffs, as will anyone else who has had eligible equipment installed since July 2009 (exceptions apply if a grant has been received which contributed to the direct costs of an installation).
In order to receive support, local authorities and housing associations will need to be the owner of the installation and retain the rights and liabilities of the equipment.

RHI tariffs - non-domestic

Biomass, ground source, water source, solar thermal and biomethane projects in the non-domestic sector that have been installed since July 2009 in Great Britain will be eligible for RHI payments from July 2011. The payments will be made quarterly over a 20 year period to the owner of the heat installation.
A non-domestic installation is a renewable heat unit in a building which is not used as a domestic premises. This includes office buildings, schools and district heating schemes (e.g. one boiler serving multiple homes).
The support that an installation receives will be fixed and adjusted annually with inflation. For more details, see the RHI tariffs for non-domestic installations.

Applying for support

Applications for support will need to be made to Ofgem once the scheme is launched and open for business.

Further information

For further information, see the Department for Energy and Climate Change website

Urban Energy

Urban Energy has earned a reputation as the south’s leading renewable energy specialist. This has been achieved by ensuring that from the initial point of client contact we offer 1st class customer service and care.

We only install products that lead the way within the renewable energy industry and that are renowned for their high quality and ecologically sound production. This reflects our own high standards and quality assurance.

We understand that introducing a renewable energy system to either your home or business is an investment that lasts for many years. With our in-house electrical and plumbing division it is our promise to you the customer that your satisfaction and peace of mind throughout this period is our number one priority.

For further information about Urban Energy products and services:

Call: 0800 232 1624

Email: info@urbanenergy.org.uk

Website: http://www.urbanenergy.org.uk/